It is with great regret than we announce that as of Noon PST today, 26th January 2009, Second Rule LLC and hence IP3 Networks will cease operations and be going out of business.

As you may be aware, we have been in litigation with Nomadix for over 18 months, and the financial and operational pressures of continuing that litigation have made it impossible for us to continue to operate. We have done everything in our power to avoid this step, but we have now run out of time, money and any viable alternatives.

This decision is prompted solely by the economic duress of the lawsuit. We are proud of our product, the service we provided and the relationships we have been able to develop over the past couple of years. We continue to firmly believe that our NetAccess products do not infringe Nomadix’s patents, and that the patents are invalid, a position validated by the expert consultants we retained to assist us in the lawsuit. It is unfortunate that Nomadix was able to accomplish, through the sheer weight of litigation, what we believe was its goal of putting Second Rule out of business, but that is the harsh reality that all of us must face.

We would like to thank everybody for their patronage and their support, and we regret any inconvenience caused to you or your customers.

Sincerely,

Second Rule LLC

Footnote: The expert report regarding the Invalidity of patents 6,130,892, 6,636,894, 6,868,399, 7,088,727 and 6,857,009 may be downloaded here http://www.ip3.com/Invalidity_Opinion.pdf and a zip file containing all the document references for this opinion may be downloaded here http://www.ip3.com/References_invalidity.zip

IMPORTANT NOTE:

If you are concerned about action being taken against you by Nomadix in regard to these patents, please contact ip3.litigation@gmail.com for help.